Fed Prepares to Act on Market Volatility

Amidst market turmoil spurred by President Trump’s trade policies, the Federal Reserve (FED) has indicated its readiness to intervene. President Susan Collins of the Boston FED highlighted the central bank’s arsenal of tools to stabilize financial markets, including liquidity and market functioning support mechanisms. The impact is being felt across various sectors, with Wall Street and government bond markets particularly vulnerable, as per JPMorgan’s recession predictions reaching 60%. While current liquidity issues remain manageable, volatility has spiked in Treasury markets.